ESG investment

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Environmental, Social and Governance-based investment.

An investment approach which takes explicit account of the environmental, social and corporate governance aspects of all proposed investments.

ESG performance correlated with better financial returns
Once controlled for systematic risk, there is a significant positive relationship between ESG performance and financial returns – this has changed considerably over the last few years when it was seen as a trade-off.
Association of Corporate Treasurers, International Treasury Week, 14 May 2020.

See also

Other resource